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Wideman Comparative Wideman Comparative Glossary of Common Project Management Terms v5.5 is copyright © R. Max Wideman, 2000-2017.

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Last updated 12-22-17

Master Glossary
Cost Control Point   - to -   Cost Plus Fee Contract
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Term
Definition     Editor's Choice
Cat Source
Cost Control Point
The point within a project at which costs are entered and controlled. Frequently, the cost control point for a project is either the cost account or the work package. [D00391]

GJN
CHMT

 WST
Cost Control System
Any system of keeping costs within the bounds of budgets or standards based upon work actually performed. Cost Control is typically a level in the budget element breakdown structure. [D00392]

N

 WST
Cost Curve
A graph plotted against a horizontal time scale and cumulative cost vertical scale. [D03821]

N

 PNG
Cost Distribution
Usually refers to the distribution of overhead (indirect) costs on some logical basis, e.g. the time or cost of all associated direct cost activities. [D02581]

N

 RMW
Cost Effective
Better value for money, or the best performance for the least cost. [D00393]

N

 PMK87
Cost Element
A unit of costs, typically in the form of direct labor, direct materials, other direct costs, and indirect or burdened costs. [D04625]

JN
CHMT

 QWF
A unit of costs to perform a task or to acquire an item. The cost estimated may be a single value or a range of values. [D00394]

N

 WST
Cost Engineering
An area of engineering principles where engineering judgment and experience are used in the application of scientific principles and techniques to problems of cost estimation, cost control, business planning and management science. [D04954]

FGJN

 043
Technique for planning and controlling costs. [D00395]

N

 NPMT
Cost Envelope
The area bounded by a cost curve based on early start dates of activities and a cost curve based on late start dates of activities. [D03822]

N

 PNG
Cost Estimate
The expected costs to perform a task or to acquire an item. Cost estimates may be a single value or a range of values. [D04626]

JN
CHMT

 QWF
Cost Estimate Classification System
A five-level cost estimate system based on the amount of project information available developed by the American Association of Cost Engineers, Class 5 is the least definitive. [D04955]

JN
C

 048
Cost Estimating
The process of developing a credible predicted cost of an activity, work package or entire project by evaluating the work, materials, overhead and risks involved. [D05625]

JN
CHMT

 RMW
The process of predicting the costs of a project. [D00397]

N

 WST
The process of assembling and predicting the costs of a project. It includes economic evaluation, project investment cost and the prediction of future trends and costs. [D00396]

N

 PMK87
Cost Estimating Relationship
A technique used to estimate a particular cost or price by using an established relationship with an independent variable. See also Parametric Estimating. [D03481]

N

 GAT
Cost Forecast
An estimate of an expected future expenditure. [D02582]

JN
CHMT

 RMW
Cost Forecasting
The activity of predicting future trends and costs within the project duration. These activities are normally marketing oriented. However, such items as sales volume, price and operating cost can affect the project profitability analysis. Items that affect the cost management functions are: predicted time/cost, salvage value, etc. [D00398]

JN
CHMT

 PMK87
Cost Growth
The net change of an estimated or actual amount over a base figure previously established. [D02297]

N

 DSMC
Legitimate increase in projected cost due to approved increases in scope.
Editor's Note: Not to be confused with the effects of Scope Creep. [D05307]

N

 RMW
Cost Incurred
Costs identified through the use of the accrued method of accounting or costs actually paid. Costs include direct labor, direct materials, and all allowable indirect costs. [D00399]

N

 WST
Cost Index
An offeror listing of all cost or pricing data and information accompanying or identified in a proposal for purposes of establishing a cost reference baseline for subsequent adjustments. [D03483]

JN
CHMT

 RMW
Cost Indices
Tables of unit costs of various types of labor, equipment and materials compiled on a regular basis that indicate cost trends, especially for estimating purposes. [D02583]

N

 RMW
Cost Input
The cost, except general and administrative (G&A) expenses, which for contract costing purposes is allocable to the production of goods and services during a cost accounting period. [D03482]

JN
HMT

 GAT
Cost Management
The effective financial control of the Project, Program or Portfolio through evaluating, estimating, budgeting, monitoring, analyzing, forecasting and reporting the cost information. [D00402]

FGJN
CHMT

 WST
The function required to maintain effective financial control of the project throughout its life span (cycle). [D00400]

GJ
HMT

 FWH
The function required to maintain effective financial control of the Project, Program or Portfolio through the processes of evaluating, estimating, budgeting, monitoring, analyzing, forecasting, and reporting the cost information. [D00401]

N

 PMK87
Cost Management Plan
The documented and agreed policies, procedures and guidelines for directing and controlling the project's cost. A part of the Project Management Plan. [D05626]

FGJ
CH

 RMW
Cost Model
A tabulated presentation of logical element cost estimates summed to a total estimate for the whole. [D02298]

JN
C

 RMW
Subdivides the total construction cost into costs for functional facility elements and systems, for example: Building Exterior Envelope. This leads to fewer sub-divisions than the UCI trade subdivisions, since several trades make up the typical enclosure. Useful in value management since it enables complete systems of various types to be compared in linear, square or cubic units of measure. [D00403]

J
C

 CCCP
Cost of Money
A form of indirect cost incurred by investing capital in facilities employed on government contracts. [D00404]

N

 WST
Cost of Quality
Those costs associated with:
  1. quality management activities (prevention and appraisal); and
  2. correcting deviations.
It does not include the normal costs of performing the work.
Editor's Note: But it may include the cost of catch-up following rework. [D00408]

FGJN
CHMT

 002 10-2
QMPP
The cost of quality planning, control, assurance and rework. [D00405]

N

 WST
The costs incurred to ensure quality. The cost of quality includes quality planning, quality control, quality assurance, and rework. [D00406]

N

 PMK96
The total price of all efforts to achieve product or service quality. This includes all work to build a product or service that conforms to the requirements as well as all work that results from non-conformance to the requirements. The cost of quality is divided into internal, i.e. those costs associated with building the product or service, and external, i.e. the costs associated with the product or service after it leaves the originating activity or company. [D00407]

N

 PMK87
QMPP
Cost Overrun
The amount by which actual costs exceed the baseline or approved total costs. [D02299]

GJN
CHMT

 RMW
The amount by which a contractor exceeds or expects to exceed the estimated costs, and/or the final limitations (the ceiling) of a contract. [D00409]

N

 WST
Cost Performance Baseline
See Cost Baseline. [D04362]

N

  
Cost Performance Index ("CPI")
The cost efficiency factor representing the relationship between the actual costs expended and the value of the physical work performed. [D04627]

JN
CHM

 QWF
Ratio of work accomplished versus work cost incurred for a specified time period. The CPI is an efficiency rating for work accomplished for resources expended. [D00410]

JN

 WST
The ratio of budgeted costs to actual costs (BCWP/ACWP). CPI is often used to predict the magnitude of a possible cost overrun by dividing it into the original cost estimate (original cost estimate/CPI = projected cost at completion). See also earned value. [D00411]

JN

 PMK96
Cost Performance Indicator ("CPI")
The ratio of BCWP to ACWP. A positive value (i.e. greater than 1) indicates that costs are running under budget. A negative value (i.e. less than 1) indicates that costs are running over budget i.e. CPI = BCWP / ACWP [D02245]

JN
C

 PMST
Cost Performance Measurement Baseline
The formulation of budget costs, measurable goals, (particularly time and quantities). for the purposes of comparisons, analysis and forecasting future costs. [D00412]

N

 PMK87
Cost Performance Ratio ("CPR")
See Cost Performance Indicator. [D02246]

JN
C

  
Cost Performance Report ("CPR")
A monthly cost report generated by the performing contractor to reflect cost and schedule status information for management. [D00413]

J
CHM

 WST
Cost Plan
Sub divides the total project budget into meaningful cost classes each with its own related outline specification or scope. It provides the first principal frame of reference required for a valid cost control system. [D00414]

JN
CH

 CCCP
A budget which shows the amounts and expected dates of incurring costs on the project or on a contract. [D04417]

N

 APM
Cost Plus
A form of contract for construction work in which the construction contractor is reimbursed for the costs it incurs in performing the work plus a lump sum or percentage fee; hence, cost-plus. This type of contract is favored where the scope of the work is indeterminate or highly uncertain and the kinds of labor, material and equipment needed are also uncertain. Under this arrangement complete records of all time and materials spent by the contractor on the work must be maintained. [D00433]

J
CHM

 CCCP
See also Cost Plus Fixed Fee Contract and Cost Plus Incentive Fee Contract. [D02584]

J
CHM

  
Cost Plus Fee Contract
See Cost Plus Percentage of Cost Contract. [D05627]

GJ
CH

  
Definitions for page C13: 50

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